Microsoft AI-103 Actual Free Exam Questions & Community Discussion
You have an Azure subscription that contains an Azure OpenAI resource.
You plan to build an agent by using the Azure AI Agent Service. The agent will perform the following actions:
- Interpret written and spoken questions from users.
- Generate answers to the questions.
- Output the answers as speech.
You need to create the project for the agent.
What should you use?
You plan to build an agent by using the Azure AI Agent Service. The agent will perform the following actions:
- Interpret written and spoken questions from users.
- Generate answers to the questions.
- Output the answers as speech.
You need to create the project for the agent.
What should you use?
Correct Answer: A
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You have a Microsoft Foundry project that contains an agent. The agent has a Model Context Protocol (MCP) tool that queries a knowledge base stored in Azure AI Search.
Some agent runs return answers from the base model without invoking the knowledge base, which results in responses without grounded citations.
You are provided with the following code snippet that runs the agent.

You need to add the correct tool _choiceparameter to the code to deterministically force the agent to invoke the MCP tool on each run.
What should you add?
Some agent runs return answers from the base model without invoking the knowledge base, which results in responses without grounded citations.
You are provided with the following code snippet that runs the agent.

You need to add the correct tool _choiceparameter to the code to deterministically force the agent to invoke the MCP tool on each run.
What should you add?
Correct Answer: C
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Hotspot Question
Your company is piloting a customer support agent in a Microsoft Foundry project name Project1.
Project1 is connected to an existing Application Insights resource, and the company's support team reviews runs in the Traces tab.
The Foundry Agent Service is configured to perform the following actions:
- Retrieve the Application Insights connection string by calling
project_client.telemetry.get_application_insights_connection_string().
- Call configure_azure_monitor(connection_string=...) to enable
telemetry.
A separate LangChain service is configured to use OpenTelemetry and has the following configurations:
- Uses AzureAIOpenTelemetryTracer(connection_string=...,
enable_content_recording=False)
- Passes the tracer by using config={"callbacks":[azure_tracer]}
Company policy has the following requirements:
- Telemetry from LangChain and OpenTelemetry must be distinguishable
within the same Application Insights resource.
- Secrets and credentials must NOT be stored in prompts, tool
arguments, or span attributes.
For each of the following statements, select Yes if the statement is true. Otherwise, select No.
NOTE: Each correct selection is worth one point.

Your company is piloting a customer support agent in a Microsoft Foundry project name Project1.
Project1 is connected to an existing Application Insights resource, and the company's support team reviews runs in the Traces tab.
The Foundry Agent Service is configured to perform the following actions:
- Retrieve the Application Insights connection string by calling
project_client.telemetry.get_application_insights_connection_string().
- Call configure_azure_monitor(connection_string=...) to enable
telemetry.
A separate LangChain service is configured to use OpenTelemetry and has the following configurations:
- Uses AzureAIOpenTelemetryTracer(connection_string=...,
enable_content_recording=False)
- Passes the tracer by using config={"callbacks":[azure_tracer]}
Company policy has the following requirements:
- Telemetry from LangChain and OpenTelemetry must be distinguishable
within the same Application Insights resource.
- Secrets and credentials must NOT be stored in prompts, tool
arguments, or span attributes.
For each of the following statements, select Yes if the statement is true. Otherwise, select No.
NOTE: Each correct selection is worth one point.

Correct Answer:

Case Study 1 - Contoso, Ltd
Overview
Company Information
Contoso, Ltd is a multinational retail company that builds, deploys, and manages generative AI and agent-based solutions by using Microsoft Foundry.
Existing Environment
Identity Environment
Contoso uses Microsoft Entra ID for identity management, authentication, and authorization capabilities that enable agents to access organizational resources and services.
Contoso recently formed a new AI engineering team named Agent1Dev Team to optimize and maintain existing AI solutions.
The team collaborates with solution architects, DevOps engineers, and security engineers to design, implement. monitor, and secure AI applications.
Contoso also has a team named Agent1Test Team that is responsible for validating AI solutions before the solution deployments.
Generative Environment
Contoso has a Microsoft Foundry deployment that contains two projects named Project1 and Project2.
Project1
Project1 contains a customer support agent named Agent1 that assists customers with product inquiries and troubleshooting requests.
Agent1 has the following configurations:
- Agent1 uses a base model deployment.
- A safety evaluation pipeline is NOT enabled.
- Tool invocation approval workflows are NOT enabled.
- Conversation memory constraints are NOT configured.
Agent1 interacts with customers by using digital support channels and answers general questions about Contoso products.
Project1 is deployed to an Azure region located in the European Union (EU).
Agent1Dev Team will use Project1 to optimize and maintain Agent1.
Project2
Project2 contains a deployed video generation model. The marketing department at Contoso has access to Project2 and plans to use the model to develop a video creation solution.
Development of the solution is incomplete.
Data Environment
Contoso stores product-related information in Azure resources that support AI applications.
The Azure environment contains an Azure Blob Storage account named storage1 that stores product detail sheets for all the Contoso products.
The product sheets include specifications, feature descriptions, and product support information that Agent1 can use to answer customer questions. The product sheets are stored in the PDF format.
Problem Statements
Contoso identifies the following issues:
- Agent1 has only general knowledge of the Contoso products.
- A recent chat interaction with Agent1 was analyzed for sentiment. The results of the analysis have NOT been processed yet.
- Agent1 does NOT use the detailed product information in the product sheets stored in storage1 when responding to customer questions.
- The finance department at Contoso reports that vendor invoices must be reviewed manually to ensure that the invoices match the terms defined in the vendor contracts. The invoices contain tables, logos, and varied layouts that make the documents difficult to process consistently.
Requirements
Planned Changes
Contoso plans to implement the following changes:
- Implement a solution for Project1 that analyzes the vendor invoices by evaluating both the visual layout and the textual content of the invoices, so that the invoice details can be verified against the vendor contract terms.
- Update the base model deployment used by Agent1 and standardize the model version to ensure continuity and consistent responses.
- Enable Agent1 to retrieve and use the detailed product information from the product sheets stored in storage1.
- Implement an indexing solution for the product sheets that Agent1 can use to answer customer questions.
- Complete the development of the video creation solution.
Technical Requirements
Contoso identifies the following technical requirements:
- The model deployment used by Agent1 must support scalable, high-throughput generative AI workloads and dynamically scale to handle variable customer support traffic, without requiring reserved throughput capacity.
- The product sheets must be processed by using an indexing pipeline that enables semantic and vector search, so that Agent1 can retrieve the relevant product information.
- Responses generated by using the product sheet information must be relevant, complete, and accurate.
- Agent1 must be able to use the product sheets to answer natural language questions about product details.
- The model version used by Agent1 must remain consistent to ensure stable responses.
- The data processed by the model must remain within the EU.
Security and Compliance Requirements
Contoso identifies the following security and compliance requirements:
- API keys must NOT be used to access Foundry-deployed models.
- Access to the Azure resources must follow the principle of least privilege.
- The developers at Contoso must authenticate to Microsoft Foundry resources by using Microsoft Entra authentication.
- Access to Project1 must be assigned to the members of Agent1Dev Team by using a security group named SC_Agent1_Dev.
- Access to Project1 must be assigned to the members of Agent1Test Team by using a security group named SC_Agent1_Test.
- Agent1 must never reveal customer information, even if a document that contains customer data is added erroneously to the product sheet repository in storage1.
- The product sheets might contain images that include embedded text. Agent1 must be protected from malicious instructions potentially hidden within the images.
Business Requirements
Contoso identifies the following business requirements:
- Users that interact with Agent1 must have a personalized experience in future interactions, including the ability for Agent1 to retain conversation context and recall relevant information from previous interactions.
- Agent1 must answer questions only about the products sold by Contoso.
You need to recommend a solution to assess the responses generated by Agent1 when the agent uses the product information stored in storage1. The solution must meet the technical requirements. What should you include in the recommendation?
Overview
Company Information
Contoso, Ltd is a multinational retail company that builds, deploys, and manages generative AI and agent-based solutions by using Microsoft Foundry.
Existing Environment
Identity Environment
Contoso uses Microsoft Entra ID for identity management, authentication, and authorization capabilities that enable agents to access organizational resources and services.
Contoso recently formed a new AI engineering team named Agent1Dev Team to optimize and maintain existing AI solutions.
The team collaborates with solution architects, DevOps engineers, and security engineers to design, implement. monitor, and secure AI applications.
Contoso also has a team named Agent1Test Team that is responsible for validating AI solutions before the solution deployments.
Generative Environment
Contoso has a Microsoft Foundry deployment that contains two projects named Project1 and Project2.
Project1
Project1 contains a customer support agent named Agent1 that assists customers with product inquiries and troubleshooting requests.
Agent1 has the following configurations:
- Agent1 uses a base model deployment.
- A safety evaluation pipeline is NOT enabled.
- Tool invocation approval workflows are NOT enabled.
- Conversation memory constraints are NOT configured.
Agent1 interacts with customers by using digital support channels and answers general questions about Contoso products.
Project1 is deployed to an Azure region located in the European Union (EU).
Agent1Dev Team will use Project1 to optimize and maintain Agent1.
Project2
Project2 contains a deployed video generation model. The marketing department at Contoso has access to Project2 and plans to use the model to develop a video creation solution.
Development of the solution is incomplete.
Data Environment
Contoso stores product-related information in Azure resources that support AI applications.
The Azure environment contains an Azure Blob Storage account named storage1 that stores product detail sheets for all the Contoso products.
The product sheets include specifications, feature descriptions, and product support information that Agent1 can use to answer customer questions. The product sheets are stored in the PDF format.
Problem Statements
Contoso identifies the following issues:
- Agent1 has only general knowledge of the Contoso products.
- A recent chat interaction with Agent1 was analyzed for sentiment. The results of the analysis have NOT been processed yet.
- Agent1 does NOT use the detailed product information in the product sheets stored in storage1 when responding to customer questions.
- The finance department at Contoso reports that vendor invoices must be reviewed manually to ensure that the invoices match the terms defined in the vendor contracts. The invoices contain tables, logos, and varied layouts that make the documents difficult to process consistently.
Requirements
Planned Changes
Contoso plans to implement the following changes:
- Implement a solution for Project1 that analyzes the vendor invoices by evaluating both the visual layout and the textual content of the invoices, so that the invoice details can be verified against the vendor contract terms.
- Update the base model deployment used by Agent1 and standardize the model version to ensure continuity and consistent responses.
- Enable Agent1 to retrieve and use the detailed product information from the product sheets stored in storage1.
- Implement an indexing solution for the product sheets that Agent1 can use to answer customer questions.
- Complete the development of the video creation solution.
Technical Requirements
Contoso identifies the following technical requirements:
- The model deployment used by Agent1 must support scalable, high-throughput generative AI workloads and dynamically scale to handle variable customer support traffic, without requiring reserved throughput capacity.
- The product sheets must be processed by using an indexing pipeline that enables semantic and vector search, so that Agent1 can retrieve the relevant product information.
- Responses generated by using the product sheet information must be relevant, complete, and accurate.
- Agent1 must be able to use the product sheets to answer natural language questions about product details.
- The model version used by Agent1 must remain consistent to ensure stable responses.
- The data processed by the model must remain within the EU.
Security and Compliance Requirements
Contoso identifies the following security and compliance requirements:
- API keys must NOT be used to access Foundry-deployed models.
- Access to the Azure resources must follow the principle of least privilege.
- The developers at Contoso must authenticate to Microsoft Foundry resources by using Microsoft Entra authentication.
- Access to Project1 must be assigned to the members of Agent1Dev Team by using a security group named SC_Agent1_Dev.
- Access to Project1 must be assigned to the members of Agent1Test Team by using a security group named SC_Agent1_Test.
- Agent1 must never reveal customer information, even if a document that contains customer data is added erroneously to the product sheet repository in storage1.
- The product sheets might contain images that include embedded text. Agent1 must be protected from malicious instructions potentially hidden within the images.
Business Requirements
Contoso identifies the following business requirements:
- Users that interact with Agent1 must have a personalized experience in future interactions, including the ability for Agent1 to retain conversation context and recall relevant information from previous interactions.
- Agent1 must answer questions only about the products sold by Contoso.
You need to recommend a solution to assess the responses generated by Agent1 when the agent uses the product information stored in storage1. The solution must meet the technical requirements. What should you include in the recommendation?
Correct Answer: D
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A multimodal agent processes user-uploaded images. An attacker embeds hidden text instructions inside an image, hoping the agent will read and act on them. Which Azure AI Content Safety capability is designed to detect this kind of attack?
Correct Answer: C
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In Azure AI Studio, you use Completions playground with the GPT-35 Turbo model.
You have a prompt that contains the following code.
function F(n)
{
var f = [0, 1];
for (var i = 2; i < n; i++) f[i] = f[i-1] + f[i-2];
return f;
}
You need the model to create an explanation of the code. The solution must minimize costs.
What should you do?
You have a prompt that contains the following code.
function F(n)
{
var f = [0, 1];
for (var i = 2; i < n; i++) f[i] = f[i-1] + f[i-2];
return f;
}
You need the model to create an explanation of the code. The solution must minimize costs.
What should you do?
Correct Answer: B
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You are designing a content management system.
You need to ensure that the reading experience is optimized for users who have reduced comprehension and learning differences, such as dyslexia. The solution must minimize development effort.
Which Azure service should you include in the solution?
You need to ensure that the reading experience is optimized for users who have reduced comprehension and learning differences, such as dyslexia. The solution must minimize development effort.
Which Azure service should you include in the solution?
Correct Answer: D
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You have an Azure subscription.
You plan to build an app that will use the Azure OpenAI DALL-E model.
You need to deploy the model.
What should you use?
You plan to build an app that will use the Azure OpenAI DALL-E model.
You need to deploy the model.
What should you use?
Correct Answer: B
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You have a Microsoft Foundry project named Project1.
Project1 contains an application that processes PDF vendor invoices.
You need to configure Azure Document Intelligence in Foundry Tools to generate a Markdown output that preserves the sections and table structure of the PDFs. The solution must minimize development effort.
What should you do?
Project1 contains an application that processes PDF vendor invoices.
You need to configure Azure Document Intelligence in Foundry Tools to generate a Markdown output that preserves the sections and table structure of the PDFs. The solution must minimize development effort.
What should you do?
Correct Answer: B
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A finance team must extract named fields, such as invoice number and total, from invoices, and they need a per-field confidence score so that low-confidence values can be routed to a human reviewer. Which Azure Content Understanding mode should they use?
Correct Answer: D
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An agent must call your organisation's internal inventory system, which is exposed as a set of tools. You want the tool definitions maintained centrally and reusable across several agents rather than redefined in each agent. Which Foundry capability fits?
Correct Answer: C
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You are building a speech processing solution in Microsoft Foundry for a customer support platform.
The platform will transcribe live phone calls, so that supervisors at your company can view call transcripts and detect issues while the calls are in progress. The call audio will arrive as a continuous stream from the telephony system.
You need to ensure that the call transcripts appear within only a few seconds of the audio stream.
What should you do?
The platform will transcribe live phone calls, so that supervisors at your company can view call transcripts and detect issues while the calls are in progress. The call audio will arrive as a continuous stream from the telephony system.
You need to ensure that the call transcripts appear within only a few seconds of the audio stream.
What should you do?
Correct Answer: B
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Drag and Drop Question
You have a web app that uses Azure AI Search.
When reviewing activity you see greater than expected search query volumes. You suspect that the query key is compromised.
You need to prevent unauthorized access to the search endpoint and ensure that users only have read only access to the documents collection. The solution must minimize app downtime.
Which three actions should you perform in sequence? To answer, move the appropriate actions from the list of actions to the answer area and arrange them in the correct order.

You have a web app that uses Azure AI Search.
When reviewing activity you see greater than expected search query volumes. You suspect that the query key is compromised.
You need to prevent unauthorized access to the search endpoint and ensure that users only have read only access to the documents collection. The solution must minimize app downtime.
Which three actions should you perform in sequence? To answer, move the appropriate actions from the list of actions to the answer area and arrange them in the correct order.

Correct Answer:

Explanation:
Enforces Read-Only Permissions: Query keys are specifically designed to provide read-only access to the documents collection of an index. Admin keys provide full read-write administrative privileges and should never be distributed to consumer-facing applications.
Zero Downtime: Azure AI Search lets you generate up to 50 individual query keys. Creating a new one allows the app to stay online throughout the entire key rotation process Reference:
https://learn.microsoft.com/en-us/azure/search/search-security-api-keys
You are deploying a support agent that enables users to upload photos.
You need to automatically classify uploaded images for harmful content. The solution must block content based on severity levels.
What should you do?
You need to automatically classify uploaded images for harmful content. The solution must block content based on severity levels.
What should you do?
Correct Answer: D
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